The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan that offers a fixed monthly return on a lump sum investment. Designed for risk-averse investors, pensioners, and those seeking financial stability, this scheme provides assured returns while ensuring capital protection.
With a 7.4% annual interest rate, POMIS is an attractive alternative to fixed deposits and mutual funds, making it an ideal choice for those who prioritize steady income over high-risk investments.
Key Features of POMIS
| Feature | Details |
|---|---|
| Investment Limit | ₹9 lakh (Single Account), ₹15 lakh (Joint Account) |
| Interest Rate (2025) | 7.4% per annum (fixed) |
| Monthly Income on ₹15 lakh | ₹9,250 per month |
| Tenure | 5 years |
| Premature Withdrawal | Allowed with penalty |
| Taxability | Interest is taxable, but no TDS |
| Official Website | India Post |
How Much Monthly Income Can You Earn with POMIS?
The monthly interest payout is calculated as:
Monthly Interest = (Investment Amount × Interest Rate) ÷ 12
For a ₹15 lakh investment:
₹15,00,000 × 7.4% ÷ 12 = ₹9,250 per month
This means that by depositing ₹15 lakh in POMIS, you will receive a guaranteed ₹9,250 every month for five years.
Why Should You Invest in POMIS?
-
Guaranteed Returns
- The scheme provides fixed monthly income, irrespective of market conditions.
-
Risk-Free Investment
- As a government-backed scheme, POMIS ensures zero capital loss.
-
No Market Volatility
- Unlike mutual funds or stocks, POMIS returns are fixed throughout the tenure.
-
Suitable for Conservative Investors
- Ideal for senior citizens, homemakers, and individuals seeking financial stability.
Eligibility Criteria for POMIS
✔ Must be an Indian citizen
✔ Minimum age: 10 years (Minors can invest with a guardian)
✖ NRIs are not eligible to invest
How to Open a POMIS Account?
Step 1: Visit the Nearest Post Office
- Locate your nearest India Post Office and request a POMIS application form.
Step 2: Submit Required Documents
- Provide KYC Documents (Aadhaar, PAN Card, Voter ID, etc.).
- Submit passport-sized photos.
- Provide address proof.
- Make an initial deposit via cash or cheque.
Step 3: Complete the Process
- Fill in the nominee details.
- Submit the completed application form with documents.
- Upon approval, receive the account passbook.
Premature Withdrawal Rules
| Duration | Penalty on Withdrawal |
|---|---|
| Before 1 year | Not allowed |
| 1 to 3 years | 2% deduction from deposit |
| 3 to 5 years | 1% deduction from deposit |
POMIS allows premature withdrawal after one year, but a penalty is imposed depending on when the withdrawal occurs.
Taxation on POMIS Returns
✔ Interest earned is taxable under ‘Income from Other Sources’.
✔ No TDS is deducted, but investors must declare interest in their Income Tax Returns (ITR).
✖ No tax exemption benefits like those available in Public Provident Fund (PPF) or Senior Citizen Savings Scheme (SCSS).
Comparison: POMIS vs Other Fixed Income Options
| Feature | POMIS | Fixed Deposit (FD) | Senior Citizen Savings Scheme (SCSS) |
|---|---|---|---|
| Interest Rate | 7.4% | 6.5%-7.5% | 8.2% |
| Tenure | 5 Years | 1-10 Years | 5 Years |
| Tax Benefits | No | No | Yes (under Sec 80C) |
| Withdrawal Flexibility | Yes (with penalty) | Yes (with penalty) | Yes (with penalty) |
Who Should Invest in POMIS?
✔ Retirees looking for a steady source of income.
✔ Risk-averse investors seeking safe, government-backed returns.
✔ Salaried professionals or homemakers wanting to earn fixed returns without risk.
✔ Parents investing on behalf of minors for future financial security.
The Bottom Line
The Post Office Monthly Income Scheme (POMIS) remains one of the best fixed-income investments in India, offering secure monthly payouts at a 7.4% interest rate. With capital protection, fixed returns, and government backing, it is an ideal choice for risk-averse investors and retirees.
To maximize returns, investors should deposit the maximum limit (₹15 lakh for joint accounts) and stay invested for the full five-year tenure.
For those seeking safe and predictable income, POMIS remains a reliable option for financial stability.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.